You said that "i have tried with these combination even while running through codewarrior simulation setup i could not find any changes in SCI0_SCISR_TDRE, SCI0_SCISR_RDRF", what is the "codewarrior simulation"? I soppose that the CW simulation can only simulate the core operation, it can not simulate the peripherals. You have to connect to board and download code to board via USBTAP/Multilink Universal devices and have a test.

then we reset the dsc MC56F8367 and gave power supply and manually sorted the TXD0 & RXD0 provides communication between dsc and software, whereas after debugging the code into the hardware and even for manual sorting it does not provide any communication between dsc and software

when the Character transferred to Transmit Shift register, the TRDE bit in the SCI_SR become 1 immediately, so you have to poll the SCI_SR register constantly, no matter whether the SCI_SR register is 16 bits or 8 bits, it does not matter.